Archive · 17 Dec 2025
Government Considers ₹5,000 Crore for PSU Insurers
The government is thinking about giving ₹5,000 crore to three public sector insurance companies because they are losing money.
A person named Vijayan said that just giving money isn't enough.
He mentioned that these companies have lost a lot of employees over the last 10 years, going from about 16,000 to 7,000 per company.
He thinks they should hire more people, list the companies on the stock market, and maybe merge them to make them stronger.
He also said that only LIC (Life Insurance Corporation) has the big size that helps companies save money and work better.
Government considering ₹5,000 crore capital infusion for three PSU insurers.
Employee numbers have halved in the last 10 years.
Proposed solutions include capital infusion, increasing manpower, listing, and merger.
Industry needs economies of scale, currently only enjoyed by LIC.
Operational strengthening is necessary beyond just capital.
- Who
- Government of India
- What
- Considering capital infusion for three PSU insurers
- When
- Not specified
- Where
- India
- Why
- To address losses and operational strengthening
- Amount
- ₹5,000 crore
- Companies
- Three PSU insurers
- Employee Reduction
- From 16,000 to 7,000 per company in 10 years
- Proposed Solutions
- Capital infusion, manpower increase, listing, merger
- Industry Need
- Economies of scale